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Recurring Deposit Calculator

Monthly bank RD maturity projector.

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Next Up Calculators

Bonds

Current yield & YTM for G-Secs and corporate bonds.

FD

Multi-frequency compounding.

PPF

Statutory tax-exempt 15-year compounding.

NSC

National Savings Certificate 5-yr compounding.

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Verdict

RD maturity value

₹3.6 L

Interest earned: ₹59.66K

Total Deposited

₹3 L

Interest

₹59.66K

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Next Up Calculators

Bonds

Current yield & YTM for G-Secs and corporate bonds.

FD

Multi-frequency compounding.

PPF

Statutory tax-exempt 15-year compounding.

NSC

National Savings Certificate 5-yr compounding.

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Recurring Deposits — Disciplined Capital Preservation

A Recurring Deposit (RD) lets you commit a fixed monthly amount to a bank for a chosen tenure (6 months – 10 years). Interest compounds quarterly at the contracted rate, locked-in for the full term. RDs are insured up to ₹5 lakh per bank under DICGC and are the safest vehicle for short-horizon goals.

Formula

Maturity ≈ P × [((1+i)ⁿᐟ³ − 1) / (1 − (1+i)⁻¹ᐟ³)] where i = r/400 (quarterly rate) and n = months.

Use Cases

  • Emergency fund accumulation over 1–3 years.
  • Short-term goals: wedding, down-payment, tuition.
  • Parking salary surplus when equity allocation is already full.

Frequently Asked Questions

How is RD maturity calculated?

RD uses the future-value-of-annuity formula with quarterly compounding: M = P × [(1+r)ⁿ − 1] / (1−(1+r)^(-1/3)), where P is monthly deposit, r is quarterly rate, and n is total quarters. The formula assumes deposits at end of month.

Is RD better than monthly SIP?

RD gives guaranteed returns (6-7.5%) but is fully taxable at slab. Equity SIP averages 12% but is volatile. For goals under 3 years choose RD; for 5+ years equity SIP wins on post-tax basis for most investors.

Is RD interest taxable?

Yes — RD interest is added to your income and taxed at slab rate. Banks deduct 10% TDS if annual RD interest exceeds ₹40,000 (₹50,000 seniors). Post-office RD interest is also fully taxable but no TDS is deducted.

Can I withdraw RD before maturity?

Yes, but with a penalty — typically 1-2% lower than the contracted rate. Most banks allow premature closure after 3 months. Some also offer loan-against-RD up to 90% of the outstanding deposit, avoiding the penalty entirely.

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